There are many crypto coins available in the market which has been offered by the different entity with unique schemes for trading purpose. One of them is Bitcoin, which is the most prevalent among all. Bitcoin was the first and the most valued cryptocurrency in the world. Most of the traders prefer to trade in Bitcoin despite the availability of other cryptocurrencies. New traders also wish to come in the crypto world and try to invest by trading Bitcoin as their first cryptocurrency. Such new traders need to have enough knowledge before trading in Bitcoin as it is highly volatile and requires a high level of security as well. There are a few points discussed below as tips for the new Bitcoin investors.
Gather related information
You need to gain information related to Bitcoin’s trading mechanism as well as volatility. Once you gather the required information, you can have better decision making ideas. Bitcoin is different from the primeval kind of derivative tradings like currency pairs and commodities.
Judge your investment with Bitcoin
To trade in Bitcoin, you may incur a significant amount of fund as an investment; in case of the adverse market scenario, you need to know your investment capability, holding period and loss capability thus you don’t have any significant impact in your daily life. Think before investing as any profit/loss you could afford without deteriorating your social or financial life. Furthermore, you need to invest very less in the starting to know the overall functionality and to get accustomed in reality.
Choose a reliable cryptocurrency trading platform
There are so many fake and fraud companies who are offering Bitcoin platform to attract newbies. So you need to find a reliable cryptocurrency trading platform to trade. You need to be very conscious to choose the cryptocurrency exchange which is registered under the company act of those countries as well as licensed by a government authority to carry out the business. You can check online about their legitimacy offers, platforms, and other services, among other platforms. Unicoin DCX is a reliable and regulated cryptocurrency exchange registered in the BNM.
Analyze security measures
Security is the chief concern in the crypto world when you talk about buying or selling any Bitcoin or Altcoin. Factors like hacking and phishing may happen any time in the crypto world, that can cause substantial loss to your invested money ultimately. So it is crucial to take care of the security in the cryptocurrency trading platformand wallets. Your private key is essential to transfer or to use the crypto coins for your purpose.
Get all fees details
Before investing in Bitcoin, you should find all the charges that are applicable for getting services like buying, selling, transferring, withdrawing, depositing, and spread so that you can calculate the overall loss incurring in transaction per lot or per coin. You should try for lesser service charge or transaction cost and also in compromising with good exchange’s services.
Learn analysis for entry and exit
Analysis for the entry and exit is the last but vital part for new Bitcoin traders because the market volatility is very high as compared to the other market. Therefore, you need to learn technical analysis, fundamental analysis, and also risk management, so that your investment may not be affected by any wrong decisions that you make. Technical analysis tells the entry-exit point, whereas fundamental analysis updates the reason for price movement. Risk management is required to mitigate the risk arising in the trading session.
Above discussed points might be helpful for the new Bitcoin investors for taking a rational decision and timed decision, so that you may get good returns on the expected capital. As this is a matter of investment and return, there must be a precaution, and in-depth preparations are required to assure positive return in the form of assets or crypto. Ultimately, investors have to be updated with the crypto world, especially Bitcoin and other Altcoins.